TAAL ENTERPRISES 2023-24 Annual Report Analysis

Thu, 26 Sep

TAAL ENTERPRISES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TAAL ENTERPRISES Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.2% in FY24 as against 27.3% in FY23.
• Depreciation charges increased by 19.5% and finance costs increased by 15.0% YoY, respectively.
• Other income grew by 44.4% YoY.
• Net profit for the year grew by 19.0% YoY.
• Net profit margins during the year grew from 19.6% in FY23 to 19.9% in FY24.

TAAL ENTERPRISES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,591	1,869	17.4%
Other income	Rs m	79	114	44.4%
Total Revenues	Rs m	1,671	1,983	18.7%
Gross profit	Rs m	434	472	8.7%
Depreciation	Rs m	53	63	19.5%
Interest	Rs m	18	20	15.0%
Profit before tax	Rs m	443	503	13.5%
Tax	Rs m	130	131	0.5%
Profit after tax	Rs m	312	372	19.0%
Gross profit margin	%	27.3	25.2
Effective tax rate	%	29.5	26.1
Net profit margin	%	19.6	19.9

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TAAL ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 667 million as compared to Rs 756 million in FY23, thereby witnessing an decrease of -11.8%.
• Current assets rose 21% and stood at Rs 2 billion, while fixed assets fell 47% and stood at Rs 131 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 13%.

TAAL ENTERPRISES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,242	1,623	30.7
Current Liabilities	Rs m	756	667	-11.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,044	2,308	13.0
Current assets	Rs m	1,797	2,177	21.2
Fixed Assets	Rs m	247	131	-47.0
Total Assets	Rs m	2,044	2,308	13.0

TAAL ENTERPRISES Cash Flow Statement Analysis

• TAAL ENTERPRISES's cash flow from operating activities (CFO) during FY24 stood at Rs 344 million, an improvement of 56.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -310 million, an improvement of 512.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -41 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs -43 million net cash flows seen during FY23.

TAAL ENTERPRISES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	220	344	56.7%
Cash Flow from Investing Activities	Rs m	-51	-310	-
Cash Flow from Financing Activities	Rs m	-225	-41	-
Net Cash Flow	Rs m	-43	-4	-

Current Valuations for TAAL ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 119.1, an improvement from the EPS of Rs 100.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,906.9, stands at 23.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	510.1	598.9
TTM Earnings per share	Rs	100.1	119.1
Diluted earnings per share	Rs	100.2	119.2
Price to Cash Flow	x	14.1	18.7
TTM P/E ratio	x	16.5	23.0
Price / Book Value ratio	x	4.5	5.0
Market Cap	Rs m	5,641	8,151
Dividends per share (Unadj.)	Rs	22.5	0.0

Ratio Analysis for TAAL ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 2.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 25.9x during FY24, from 26.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 22.9% during FY24, from 25.2% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 32.2% during FY24, from 37.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 17.0% during FY24, from 16.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.4	3.3
Debtors’ Days	Days	798	752
Interest coverage	x	26.2	25.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.1	17.0
Return on equity	%	25.2	22.9
Return on capital employed	%	37.1	32.2

To see how TAAL ENTERPRISES has performed over the last 5 years, please visit here.

TAAL ENTERPRISES Share Price Performance

Over the last one year, TAAL ENTERPRISES share price has moved up from Rs 2,057.4 to Rs 2,906.9, registering a gain of Rs 849.6 or around 41.3%.

Overall, the S&P BSE SENSEX is up 29.0% over the year.

(To know more, check out historical annual results for TAAL ENTERPRISES and quarterly results for TAAL ENTERPRISES)